Today, I want to write about Bitcoin.
It’s the hottest new asset in the investment world.
It has especially caught the attention of the younger generation, and in some countries with unstable currencies, it has even been designated as the official currency.
While many people are well-versed in it, others might have just heard the word Bitcoin in passing from the news, the internet, or YouTube.
I have known about Bitcoin since 2015.
Looking back now, it was a time of incredible opportunity, with its value being relatively low,
but it wasn’t easy to invest in it rashly. Why? Because there was no trust in this asset.
However, over the past few years, its value has increased hundreds of times,
and now one Bitcoin is worth $65,000, equivalent to the price of a Mercedes-Benz E-Class.
How do I feel about it now? Owning a few Bitcoins would make you a wealthy person, and I too would like to invest if I had the extra funds.
So why is this valuable?
Many people have their theories, but on my blog, I will share my own thoughts.
When we assess the value of something, we base it on the established value from the past.
So how was the initial value of that item determined?
For example, gold is now widely known as a safe investment asset and has been considered precious for ages. Otherwise, it could simply be seen as a yellow rock.
Gold gained its value because a large number of people agreed upon its worth. What about diamonds?
They are considered eternal, and each diamond reflects light uniquely, making them valuable because many people agreed on their worth.
So, what about Bitcoin?
There is a famous Bitcoin Pizza Day.
It commemorates a time when Bitcoin had little value, and thousands of Bitcoins were used to buy pizza.
But now, Bitcoin’s value has risen to $65,000, driven by various media and large financial players who have assigned value to it, much like gold and diamonds.
The statements of these influential groups are accepted as truth by the general public,
and thus, Bitcoin, which is essentially just digital data, has come to be highly valued today.
There is an endless amount of discussion to be had on this topic, but for this post, I’ll conclude with my thoughts on the value of Bitcoin.
